Amazon chip business tops $20B run rate
Amazon has revealed that its in-house chip business has reached an annual revenue run rate of more than $20 billion, highlighting the company’s growing strength in the global AI and cloud computing race.
In a letter to shareholders, CEO Andy Jassy said the milestone reflects strong demand for Amazon’s custom-designed processors, including the Graviton and Trainium chips, News.Az reports, citing Reuters.
Jassy also disclosed that Amazon’s cloud division has seen rapid acceleration in artificial intelligence services. The company’s AI-related revenue run rate surpassed $15 billion in the first quarter of 2026 alone, underscoring how central AI has become to its business model.
The figures point to a broader shift in the tech industry, where major players are investing heavily in proprietary chips to reduce reliance on third-party suppliers and optimize performance for AI workloads.
Amazon’s push into semiconductors positions it more directly against rivals building similar ecosystems, as demand for high-performance computing continues to surge. Custom chips like Graviton are designed to improve efficiency and lower costs for cloud customers, while Trainium targets intensive AI training tasks.
The $20 billion run rate signals that Amazon is no longer just a cloud services provider but an increasingly influential force in chip design and AI infrastructure. As competition intensifies, its ability to integrate hardware and cloud services could become a key advantage in the next phase of AI-driven growth.
News.Az
By Aysel Mammadzada
